Threat of sanctions: Iran understands Pakistan’s stance on IP pipeline

Both sides are cooperating to take project forward.

ISLAMABAD:

Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi has insisted that international sanctions against Iran are still a hurdle in the way of Iran-Pakistan (IP) gas pipeline project and Tehran is not angry over Pakistan’s stance.

Speaking in a meeting of sub-committee of the Senate Standing Committee on Petroleum here on Wednesday, with Abdul Nabi Bangash in the chair, Abbasi said Prime Minister Nawaz Sharif had taken up the issue with Iranian authorities during his visit earlier this week.

“Iran is not angry with us and is aware of the situation,” he said, pointing out that both countries were cooperating in an effort to press ahead with the project – a key venture to meet Pakistan’s fast growing energy needs.

Saying that gas reserves in Khyber-Pakhtunkhwa were depleting fast, he stressed that the government was taking measures to increase production.

In the meeting, social welfare projects in gas-producing areas of Hangu, Kohat and Karak also came up for discussion. “The KPK chief minister has informed us that they cannot control the law and order situation,” Abbasi said.

According to him, the government is facing a loss of Rs8 billion because of illegal commercial, industrial and compressed natural gas (CNG) connections. Apart from this, it is losing Rs4 billon due to gas leakages.

He pointed out that members of the National Assembly were getting production bonus in line with the cabinet’s decision taken in 2011. The money was being spent through district coordination officers (DCOs).

Committee Convener Abdul Nabi Bangash suggested that gas-producing companies should hire local people on a priority basis. He ruled out law and order problems in the Kohat Division, saying 46,000 barrels of oil per day and liquefied petroleum gas (LPG) were being produced in the area.

“Gas production in KPK comprises 27% of total production, though it consumes 8% to 10%,” he said, complaining local consumers were not being provided gas connection.

He held employees of Sui Northern Gas Pipelines responsible for billions of rupees worth of gas theft by providing illegal commercial and industrial connections.

Senator Talha Mahmood expressed reservations about extending the Saindak copper and gold mining contract to a Chinese firm, but agreed that the company had managed to restart the closed project.

He emphasised the need for hiring locals in gas companies and called for filing cases against people involved in gas theft.

Senator Osman Saifullah Khan suggested that gas prices should be increased to discourage its consumption in generators and the energy thus saved could be diverted to power plants.

OGDC Managing Director Riaz Khan said gas production had been continuously declining, but efforts were being made to boost output.

Published in The Express Tribune, May 15^th, 2014.

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